8(a) companies face new uncertainty

Bill Scheessele | How to build your business development team

By Bill Scheessele

Dec 04, 2008

The U.S. Court of Appeals for theFederal Circuit recently ruled thatthe Defense Department's contractingrule for small, disadvantagedbusinesses was unconstitutional. Itsounds harsh, but that could be thewake-up call many 8(a) firms need.

The good news is that the rulingapplies only to DOD's program. Thecourt took 10 years to reach that decision,and it doesn't dismantle set-asideprograms created by federal laws.

The bad news is that the decision addsmore uncertainty and gives 8(a) businessesmore to worry about.

When companies accept entry into the8(a) program, they also accept the challengeof creating a business developmentculture and methodology.

There is no forever under the 8(a) program.Eventually, you must deal with thereality of surviving on your own. If not,you've created an environment ofdependency and vulnerability regardlessof your technical capability andrelationships.

Cultivating a revenue-generation capabilityinvolves more than investing inproposal writing, capture managementand how-to-sell workshops or relying ona mentor/protégé relationship. Buildinga business development operation andculture early in the program requirestaking a number of steps.

Developing a strategic and tactical revenuegrowth plan.

Securing a business developmentleader with hunting and farmingabilities.

Understanding business developmentthinking and methodology.

Installing a companywide businessdevelopment process.

Building a team of hunters and farmersto guarantee revenue growth.

A business development plan isn't thesame as a business plan. The formerrequires a focus on business developmentand revenue generation from aproactive rather than reactive stance. Getoutside help for this critical first step.Business development leadership iscrucial to growth. The individual chosenshould have hunting and farming expertiseand the interpreneurial profile of ateam builder. If someone with those credentialsis not already on the team, findan outside professional with experiencein building a business developmentoperation. Your business developmentthinking must focus on building long-termrelationships with clients. Althoughproviding top-notch customer service isessential, knowing and understandingthe challenges your customers face iseven more important. Invest in the trainingyou need to expand your group'sknowledge about business development.

It is essential to install a companywideprocess that all employees use. Everyonewith customer contact is in businessdevelopment and should understand theorganization's business developmentprocess and use it.

Building a team of strategic huntersfor new business and organic farmers foradd-on business is crucial for ongoingviability. Whether a firm continues as anindependent organization or is beingpositioned for acquisition, the businessdevelopment capability will make thedifference between succeeding witheither strategy or folding because thecompany did not meet revenue objectivesand profit projections.

Firms in the government servicesindustry face many challenges overwhich they have no control. Whetheryour company is a member of the 8(a)program or not, actively securing itslong-term viability by cultivating businessdevelopment thinking, disciplineand methodology is something you cancontrol and should tackle as an approachfor 2009 and beyond.

Bill Scheessele is the CEO of MBDi, a global business development services firm providing expertise in business development best practices in the national security, defense, scientific, energy and engineering industries. The firm offers BD consulting, strategy, planning and personnel services in addition to education workshops to help BD professionals identify hidden strengths, barriers to progress and opportunities for improvement. Learn more about MBDi, their revenue growth resources and their workshops at http://www.mbdi.com.

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